backtop


Print 55 comment(s) - last by Mint.. on Mar 14 at 7:14 AM

Tesla will have to stop selling its cars directly in the state starting April 1

Tesla Motors called New Jersey out yesterday for introducing a new rule that would block the automaker's ability to sell electric vehicles directly to customers, but it didn't seem to do much good as the state went ahead and voted in favor of it. 
 
According to CNBC, the New Jersey Motor Vehicle Commission voted in favor of the ban of direct auto sales in the state on Tuesday. This means that Tesla must stop selling its electric vehicles directly to customers in the state beginning on April 1, 2014. 
 
Tesla already operates two stores in New Jersey, and had plans to open more before this new rule. It's possible that Tesla could use them as showrooms now, where customers can look at the Model S, but must go buy them from dealerships or online. 
 
New Jersey is now the third state to ban Tesla's direct sales model. Arizona and Texas were the first two states to give Tesla the boot. 


Tesla CEO Elon Musk

New Jersey Gov. Chris Christie’s administration proposed the new rule earlier this week, which requires a person to have a franchise agreement with an auto manufacturer in order to be granted a license to sell. 

Following the announcement of that rule, Tesla went to its website to make its opposition known. 

"Unfortunately, Monday we received news that Governor Christie’s administration has gone back on its word to delay a proposed anti-Tesla regulation so that the matter could be handled through a fair process in the Legislature," said Tesla in a statement. "The Administration has decided to go outside the legislative process by expediting a rule proposal that would completely change the law in New Jersey. This new rule, if adopted, would curtail Tesla’s sales operations and jeopardize our existing retail licenses in the state."

Tesla CEO Elon Musk has said in the past that he'd be willing to take the auto dealership battle to a federal level if needed. 

Source: CNBC



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: Yet Again
By spamreader1 on 3/12/2014 1:23:20 PM , Rating: 4
And although Texas is a Red State, there is a bright blue dot where Austin is...


RE: Yet Again
By spamreader1 on 3/12/2014 1:27:50 PM , Rating: 3
And for the record I tend to agree with most Republican party policies. This though is counter to the general Republican idea of encouraging businesses to compete with each other, and the may the best company win. This is far more a matter of using government regulations to force a particular business model.


RE: Yet Again
By BRB29 on 3/12/2014 1:33:28 PM , Rating: 3
It's just a bunch of dealers not wanting to lose their millions. Come on, they've milked the American public for decades under the pretense that they are actually providing competition. That was true back in the day when every brand was not available in every city. Today, there's no need for dealers and they are fighting teeth and nail to hold onto their scam of a middleman business.


RE: Yet Again
By AMDftw on 3/12/2014 2:06:18 PM , Rating: 2
You must live in TX or have in the past. I do and it's a valid statement. lol


RE: Yet Again
By niva on 3/13/2014 3:01:10 PM , Rating: 2
Actually all the big cities in texas tend liberal, it's what happens on the outskirts and the rural areas which keeps the state red. In another 5 to 10 years if Republicans keep up their bible thumping and war mongering up this state will turn Democrat.

I live in Houston, it's changed a lot in the last 10 years.


RE: Yet Again
By cruisin3style on 3/12/2014 11:29:19 PM , Rating: 2
Many highly populated cities or city capitals are blue dots in an otherwise red map, for instance of a republican state

In Afghanistan and Pakistan the insane from-the-middle-ages people exist more in the remote country areas, not the cities

hmmmmmmm...i'm trying to see a correlation here...


"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki